Attached files
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported): June 2, 2015
SYNERGY RESOURCES CORPORATION
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(Exact name of Registrant as specified in its charter)
Colorado 001-35245 20-2835920
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(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
20203 Highway 60
Platteville, Colorado 80651
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(Address of principal executive offices, including Zip Code)
Registrant's telephone number, including area code: (970) 737-1073
N/A
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(Former name or former address if changed since last report)
Check appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below)
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-14(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry into a Material Definitive Agreement
On June 2, 2015, the Company entered into the sixth amendment to its
revolving line of credit agreement. SunTrust Bank is the Joint Lead
Arranger/Administrative Agent for the eight bank syndicate and KeyBank, National
Association is the Joint Lead Arranger/Syndication Agent.
The maximum amount the Company can borrow at any one time is known as the
Borrowing Base. The Borrowing Base can increase or decrease based upon the value
of the collateral which secures any amounts borrowed under the line of credit.
For the most part, the value of the collateral will be derived from the
estimated future cash flows of the Company's proved oil and gas reserves,
discounted by 10%. The new Borrowing Base is $175,000,000. The maximum loan
commitment by the banks is $500,000,000, subject to lesser amounts imposed by
the Borrowing Base.
Furthermore, the covenant requiring maintenance of a minimum current ratio
has been replaced by covenant requiring the maintenance of a minimum liquidity
amount of $25,000,000.
The interest rate on outstanding borrowings will be based upon a pricing
grid which escalates with utilization and establishes a minimum of 2.5%.
Amounts borrowed from the banks:
o will be used to develop oil and gas properties, acquire new oil and
gas properties, and for working capital and other general corporate
purposes;
o will be due and payable on December 15, 2019; and
o are secured by substantially all of the Company's producing wells and
developed oil and gas leases.
Any of the following are an event of default which would cause any amounts
due under the line of credit to become immediately due and payable:
o the Company fails to make any interest or principal payment when due;
and
o the Company breaches any representation, warranty or covenant or
defaults in the timely performance of any other obligation in its
agreements with the banks.
The foregoing description of the sixth amendment to the line of credit
agreement, including events of default, does not purport to be complete and is
qualified in its entirety by reference to the full text of the amended credit
agreement which is filed as Exhibit 10.35 to this report.
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Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
The information included under Item 1.01 is incorporated by reference into
this Item 2.03.
Item 9.01 Financial Statements and Exhibits
Number Description
10.35 Sixth Amendment to Credit Agreement
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: June 5, 2015
SYNERGY RESOURCES CORPORATION
By: /s/ Frank. L. Jennings
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Frank L. Jennings, Principal Financial
and Accounting Office
